Envelope Budgeting

The Classic Budgeting Approach

Envelope budgeting is NivoaFlow's default method and is available on all tiers, including Free. It is one of the most intuitive ways to manage your money — allocate a set amount to each spending category and track how much you have left.

How It Works

The Concept

Imagine putting cash into labelled envelopes — one for Groceries, one for Dining Out, one for Entertainment, and so on. Each envelope has a fixed amount for the month. When an envelope is empty, you know to stop spending in that category.

NivoaFlow brings this concept to your digital finances.

Setting Up Your Envelopes

1. Go to Plan > Budget from the main menu
2. Click Create Envelope in the top right
3. Pick a category, enter a monthly amount, and choose whether to roll over unspent funds (or deficits) into the next month
4. Save — the envelope appears in your list and starts tracking spending right away

Repeat for each category you want to budget. Income and transfer categories are excluded automatically.

Tracking Spending

As transactions come in and get categorised, NivoaFlow tracks spending against each envelope and labels each row with a status:

• On track — you are comfortably within your limit
• Watch — you are getting close to the planned amount
• Off track — you have crossed your limit

Each envelope shows the amount planned, the amount spent, what is remaining (including any rollover), and the trend versus the previous month.

Rollover Modes

When you create an envelope you can turn rollover on or off:

• Rollover on — surplus or deficit carries forward into next month, so a frugal month gives you extra room next time
• Rollover off — the envelope resets at the start of each month and unspent funds disappear

You can change this later from the envelope's detail drawer.

Monthly Reset

At the start of each month, spending totals reset and your full planned amount becomes available again. If rollover is on, last month's surplus or deficit is added to (or subtracted from) the new month's room.

Adjusting Envelopes

Life changes, and so can your budget. Click any envelope row to open its detail drawer where you can:

• Adjust the monthly amount up or down
• Toggle rollover on or off
• Delete the envelope if it is no longer needed

Changes take effect immediately for the current month.

Why Envelope Budgeting Works

• Visual and intuitive — seeing money "run out" creates natural spending awareness
• Simple to set up — no complex calculations needed
• Flexible — adjust amounts month to month as your needs change
• Works for everyone — available on the Free tier with no limitations

Tips

• Start with your biggest categories — Groceries, Rent, and Transportation are usually the top three
• Leave a "Miscellaneous" envelope for unexpected small expenses
• Review at mid-month — check your plan vs. actual progress halfway through to course-correct if needed